Press Up Hospitality has shut down its Wagamama outlets in Dublin’s Dundrum, South King Street, and Blanchardstown. The decision came following unsuccessful negotiations between receivers appointed last week and the UK chain to restructure the franchise agreement. The closure immediately affects 106 employees, who have been notified and are expected to discuss job implications with receivers.
The South King Street and Blanchardstown venues may continue their operations within the group due to an agreement made between Press Up and the landlords. The company anticipates unveiling fresh offerings within the span of four to eight weeks. A resolution about the Dundrum lease, however, was not reached.
Last week, Cheyne Capital, a London-based lender, assumed command of Press Up Hospitality Group with a proposal to infuse it with new capital. The entity was formed over ten years ago by Paddy McKillen Jnr and Matt Ryan. As part of a debt-to-equity conversion, Cheyne gained a dominant equity stake in the business.
Cheyne designated Shane McCarthy and Cormac O’Connor from KPMG as receivers to four organisations managing 12 sites under the Elephant & Castle, Wagamama, and Wowburger restaurant brands. This includes Portalon Ltd, the proprietor of Wagamama’s South King Street, Dundrum, and Blanchardstown branches in Dublin. Portalon’s recent accounts demonstrate a loss of €250,443 as of May 2021.
The receivership also affects other businesses like Elephant & Castle Ltd (with outlets in Temple Bar, Rathmines in Dublin, and Bray), Svetac Ltd (managing Wowburger outlets on Wexford Street, Ranelagh, Parnell Street in Dublin, and Bray), and Silots Ltd (running Elephant & Castle in Churchtown and Beacon in Dublin).
Nevertheless, there are 18 Press Up venues that are not under receivership. Wagamama has been approached for comments.
Press the button below to receive Business notifications on your mobile and gain access to our Inside Business weekly podcast for the latest news, analyses, and insight.